HPE's networking revenue just tripled on AI demand — ride the data-center buildout wave
Hewlett Packard Enterprise just reported its biggest earnings surprise since 2018, fueled by a staggering 148% jump in networking revenue as companies scramble to build AI infrastructure. A separate data-center supplier, Fluence, also surged after announcing a new Nvidia partnership.
Idea
HPE's blowout quarter — driven by 148% networking growth — is proof that AI spending isn't just about chips. Companies need the networking gear and data-center infrastructure to connect all those AI systems. Fluence just locked in an Nvidia partnership, putting it directly in the flow of that spending. When one company in a supply chain reports explosive demand, its suppliers and peers often follow. The play here is to buy the infrastructure companies that enable AI data centers but haven't yet had their big moment.
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News sources
- HPE's stock soars toward record gain as earnings show a networking bonanza — MarketWatch
- AI Data Center Supplier Fluence Soars On Nvidia Partnership — Investor's Business Daily
- HPE skyrockets 30% on biggest earnings beat since 2018 — CNBC